Youtor
Double entry for Bad Debts and Provision for Bad Debts Old version
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=Y2cJylCR3h8
New version of this video is here ➡️ • Journal entries for bad debts • Learn accounting with us today ➡️ https://www.theaccountingstudent.co.uk • DOUBLE ENTRY FOR BAD DEBTS AND PROVISION FOR BAD DEBTS • Bad debts arise when a credit customer does not pay their debts. Some of the reasons for a bad debt happening could be due to a customer going bankrupt, the business maybe a victim of fraud, there could be a dispute on the goods or services, or the debt might be too small to be worth pursuing in law. The provision for bad debts is usually calculated by a business to estimate the debtors that will turn into bad debts. The bad debt provision is an approximate value which is set against the future recognition of debtors as being uncollectible and this will normally be calculated as a percentage of the total debtor’s amount. A bad debt is recorded in the accounts as an expense and reduces the net income. Whereas the provision is recorded in the bad debt expense account and the provision for bad debts account. For bad debts, the details are entered on debit side of the Bad Debt expense ledger or T account. And we post this to the profit and loss account as an expense. For the provision for bad debts, we work out the provision amount first which will be the debtors amount multiplied by the historical percentage of debtors that do not pay. The provision amount we be entered on credit side of the provision for bad debts ledger or T account. Then we will treat this as an expense in the profit and loss. • This video will help you with questions such as what is the journal entry to record provision for bad and doubtful debts, what is the bookkeeping entry for bad debts, what is the journal entry for provision, how do you record bad and doubtful debts, what is the provision for bad debts in P L account, what is the double entry for provision, how do you treat provision for doubtful debts, Does provision for bad debts go in the income statement, provision for doubtful debts journal entry, what is the journal entry for write off bad debt, provision for doubtful debts journal entry, double entry for bad debts and provision for bad debts journal entry, write off bad debt journal entry, provision for bad debts adjustment, difference between bad debts and provision for bad debts, provision for bad debts in final accounts, provision for doubtful debts in trial balance, provision for bad debts journal entry in tally. • MUSIC CREDIT • @benfrydrums • DISCLAIMER • Our content is to be used as an EDUCATIONAL TOOL that aims to provide a foundation for individuals to learn financial accounting, management accounting and bookkeeping topics as practiced in the United Kingdom. As a result, not all complexities are shown or provided. Examples may include but are not limited to; differences between financial reporting, accounting standards or tax treatments. We are NOT ENGAGED in the providing of accounting, bookkeeping, financial, investment, tax, or other professional services. You should consult with a qualified or professional such as an accountant, business advisor, investment specialist, lawyer, solicitor, etc., with regards to specific facts and situations. • #baddebts #provisionforbaddebts #doubleentry
#############################
